Convert CAPEX to OPEX Using Microsoft Office 365

The Microsoft Office 365 subscription model allows cash to be allocated to other critical business needs this also reduces TAX liabilities and CFO’s find the ‘Predictable IT costs’ they need to plan ahead.

IOTAP has been consulting, designing and implementing cloud solutions for numerous clients for over a decade. IOTAP has an experienced team that has helped customers from various industries achieve the best of cloud.

WHY Convert CAPEX to OPEX

1CAPEX is a current expense from which you can gain benefits only at a later stage.

2Tax is directly proportional to expenditure, Higher the CAPEX, higher the Taxes.

3Investor see lesser value of assets and net income, when they see CAPEX on balance sheets.

4CAPEX is an investment which if underutilized turns into a liability

5The Time Value of Money is reduced. Money has its own appreciation rate, so saving taxes today is much advisable then saving taxes after a year.

As a wise man once said "Money saved is money earned". Opting for OPEX over CAPEX gives you a lot of benefits in terms of your IT expenses

Business case

Let’s take an example of a 100 user company with Active Directory, Exchange, SharePoint, LYNC & Office pro plus. Assuming standard costs for license and hardware and Software, along with implementation cost. Keeping in mind manpower required to maintain the hardware and that the life of a hardware is around 5 years. We can assume the following:

Required Feature

On premise cost

Office 365 cost (per user)

Office pro plus

₹ 30,000.00

₹ 9000.00 PA

Lync Server + SharePoint Server + Exchange Server

₹ 40,000.00

NOT REQUIRED

Lync + SharePoint + Exchange CAL

₹ 3,000.00

CALs NOT Required

Backup Software

₹ 120,000.00

Included

Hardware

Exchange Server

₹ 200,000.00

No hardware Required Except end user Machines

LYNC Server

₹ 200,000.00

SharePoint Server

₹ 200,000.00

AD Server

₹ 200,000.00

Backup Server

₹ 200,000.00

Storage

₹ 500,000.00

Implementation cost (One Time Cost)

Cost to setup Hardware

₹ 1,500.00

Not Required

AD + Exchange + SharePoint + Lync Deployment Cost

₹ 5,000.00

₹ 50,000.00

Backup (Optional third party tool)

₹ 4,000.00

Included

TCO

Description

On Premise

Office 365

SOFTWARE + HARDWARE + IMPLEMENTATION For 100 users

₹ 17,03,500.00

₹ 1,50,000.00

TAXATION

₹ 4,000.00

Included

About IOTAP

IOTAP is a Microsoft Gold Certified partner and a Cloud Solution Provider. We provide full life-cycle solutions for implementation of CRM, Collaboration solutions, Web Content Management Systems, and Custom Application Development projects. We also provide consulting and support for software solutions such as Microsoft SharePoint, Office 365, Dynamics 365, Azure, and Security & Availability solutions such as Fortinet, Cyberoam, and Sonicwall.